Austonian Now Tallest Building in Austin
June 29, 2009 22:12 Filed in: News
According to the Austonian, after
640 days of construction, tonight The Austonian will
become the tallest structure in Austin at 571 feet. The
next milestone comes in December when The Austonian's
glass crown is installed. The 56-story building will
reach 683 feet at that point making it the tallest
residential building in the western United States.
Amazingly -- for those who have looked up at the tower
recently -- the building still has 112 feet to go. The
picture below shows the pouring of the 51st floor. When
completed, the tower will be 56 stories tall.
Austonian: Sweet Services for Visiting Guests
June 24, 2009 20:39 Filed in: News
The
Austonian is already the tallest building
in Austin. It will have great views and a perfect
location on second and Congress.While the project is
somewhat pretentious, the Austonian team is working
hard to differentiate the project through services.
In their latest update, the project team has
announced a unique catalog of services and amenities
for hosting and entertaining guests.
First, formal dinners may be arranged in home or at the 55th-floor Austonian Club, which offers 360-degree views of downtown Austin, the Colorado River and the Texas Hill Country from the tallest building in the city. The Austonian Club has a private dining room for smaller affairs and a flexible space accommodating up to 200 people.
Rendering: The Austonian Club
In addition, there are additional outdoor entertaining options on the 10th floor Lawn, including outdoor kitchens, swanky private cabanas with flat-screen televisions and in-pool lounging areas. Indoor entertainment-geared amenities on the 10th floor include a billiard and game room outfitted and a 12-seat screening room.
Rendering: Austonian Cabana & Pool
One of the great things about high-end downtown projects is that many include rooms for overnight guests. This is huge: it allows residents to purchase smaller units but to still host guests when they need to. In the case of the Austonian, four guest suites on the 10th floor have feature custom bedding, Egyptian cotton sheets, a flat-panel television, a refrigerator and both wired and wireless Internet access. Four separate private terraces offer views of the city and nearby Lady Bird Lake. The guest suites, like the other residences of the building, are supported by a team of Austonian Assistants providing personal service 24 hours a day, seven days a week. Suites may be reserved in advance; the only fee is a per-suite cleaning fee.
I am sure there will be more to come as the building nears completion . . .
Austonian Construction Progress
First, formal dinners may be arranged in home or at the 55th-floor Austonian Club, which offers 360-degree views of downtown Austin, the Colorado River and the Texas Hill Country from the tallest building in the city. The Austonian Club has a private dining room for smaller affairs and a flexible space accommodating up to 200 people.
Rendering: The Austonian Club
In addition, there are additional outdoor entertaining options on the 10th floor Lawn, including outdoor kitchens, swanky private cabanas with flat-screen televisions and in-pool lounging areas. Indoor entertainment-geared amenities on the 10th floor include a billiard and game room outfitted and a 12-seat screening room.
Rendering: Austonian Cabana & Pool
One of the great things about high-end downtown projects is that many include rooms for overnight guests. This is huge: it allows residents to purchase smaller units but to still host guests when they need to. In the case of the Austonian, four guest suites on the 10th floor have feature custom bedding, Egyptian cotton sheets, a flat-panel television, a refrigerator and both wired and wireless Internet access. Four separate private terraces offer views of the city and nearby Lady Bird Lake. The guest suites, like the other residences of the building, are supported by a team of Austonian Assistants providing personal service 24 hours a day, seven days a week. Suites may be reserved in advance; the only fee is a per-suite cleaning fee.
I am sure there will be more to come as the building nears completion . . .
Austonian Construction Progress
EXCLUSIVE: Downtown Condo Market Surges
June 18, 2009 22:05 Filed in: News
Over the last 8 weeks, the downtown condo market has
taken a dramatic positive turn. After 20 tough months,
buyers have begun snapping up units at a surprisingly
strong pace.
While the MLS data shows 11 units having sold during May -- 2 less than last year -- the real story is much more dramatic. Since May 1, bargain hunters have put more than 40 units under contract at the Shore and another 20 in the Brazos Place auction. In addition, pre-sale units continue to move at the W and Spring. In fact, inventory numbers have dropped over the last month. If this rate continues, there could be a shortage of mid-price inventory by the end of the year.
As for the May MLS data, which does not include the Brazos Place transactions and does not yet include the Shore contracts, there was a 1% year-over-year increase in price per square foot and a 31% decrease in average days on market.
May sales represented a surprisingly broad set of transactions with sales in Austin City Lofts, the Brown Building, Cambridge Condos, Milago, the Nokonah, Railyard condos, and three units in 360. The average price per square foot for the May 360 units was $360 per square foot.
While the 1-month data is inevitably a small sample, our 12-month rolling index echoes the trend, showing the lowest Average Days on Market reading of the year.
See the full AustinTowers | urbanspace Downtown Condo Market Index -- including the monthly sales and inventory reports and the 12-month rolling index here.
While the MLS data shows 11 units having sold during May -- 2 less than last year -- the real story is much more dramatic. Since May 1, bargain hunters have put more than 40 units under contract at the Shore and another 20 in the Brazos Place auction. In addition, pre-sale units continue to move at the W and Spring. In fact, inventory numbers have dropped over the last month. If this rate continues, there could be a shortage of mid-price inventory by the end of the year.
As for the May MLS data, which does not include the Brazos Place transactions and does not yet include the Shore contracts, there was a 1% year-over-year increase in price per square foot and a 31% decrease in average days on market.
| One-Month
Sales Report
|
|
||||||
|
Month
|
Sales
|
Avg. Price
|
$/SF
|
Avg SF
|
Avg Year
|
% Ask
|
ADOM
|
| May-08
|
13
|
$297,792
|
$304
|
995
|
1969
|
95%
|
91
|
|
May-09
|
11
|
$347,045
|
$308
|
1,150
|
1989
|
96%
|
63
|
|
Change
|
-15%
|
17%
|
1%
|
16%
|
20.91
|
1%
|
-31%
|
May sales represented a surprisingly broad set of transactions with sales in Austin City Lofts, the Brown Building, Cambridge Condos, Milago, the Nokonah, Railyard condos, and three units in 360. The average price per square foot for the May 360 units was $360 per square foot.
While the 1-month data is inevitably a small sample, our 12-month rolling index echoes the trend, showing the lowest Average Days on Market reading of the year.
See the full AustinTowers | urbanspace Downtown Condo Market Index -- including the monthly sales and inventory reports and the 12-month rolling index here.
The Worst Condo Project Ever?
June 15, 2009 21:42 Filed in: News
Some condo projects are better than others. After
reading a story in the New York Times, I can safely say
that the worst condo project in the country is not in
Austin.
For the bargain price of $1,300 per square foot, you could own a piece of the Sheffield57, a 50-story condo conversion project on the west side of manhattan. At more than $400m, the original building purchase (prior to conversion) is supposedly the most expensive residential building sale ever. With the completion partially complete, you could own a $7M unit with $6,000 in monthly taxes and fees in what may be the worst condo project in the country.
How bad can a condo project be? Here are some facts about the project:
- One of the developers is accused of siphoning off $50m in development funds for personal use
- In retaliation, another developer hit the first developer in the head with a metal ice bucket during "a rather intense business meeting". He was arrested and charged for harassment and pleaded guilty. He was sentenced to community service.
- After 2 years of marketing, only 40% of it's 597 units have been sold
- The condo owners are suing the developers
- Rental tenants (who have lived in the building since before it was converted) are suing claiming improper eviction and failure to maintain the building
- The developers are suing each other
- Unpaid contractors have placed liens against the individual units.
- The State Attorney General has halted future sales in the building
- The developers are in default on $100 million in loans
- The lenders are preparing to foreclose on the developers
- The developers failed to pay $5.4 million in common charges for the hundreds of units that they still own
- Tenants have reported severe structural defects including collapsed ceilings, extensive water leaks and damage, and asbestos contamination
While no project is perfect, Sheffield57 offers an important lesson to condo buyers. Condo projects are not always completed as marketed. The track record of the developers, their ability to meet their commitments, and the ability to deliver a quality product will determine the final value of a condo unit. While most projects turn out well, it's important to complete due diligence on the developers and commercial lenders. However, like any other speculative project, condo developments come with speculative risks that are difficult to completely eliminate.
For the bargain price of $1,300 per square foot, you could own a piece of the Sheffield57, a 50-story condo conversion project on the west side of manhattan. At more than $400m, the original building purchase (prior to conversion) is supposedly the most expensive residential building sale ever. With the completion partially complete, you could own a $7M unit with $6,000 in monthly taxes and fees in what may be the worst condo project in the country.
How bad can a condo project be? Here are some facts about the project:
- One of the developers is accused of siphoning off $50m in development funds for personal use
- In retaliation, another developer hit the first developer in the head with a metal ice bucket during "a rather intense business meeting". He was arrested and charged for harassment and pleaded guilty. He was sentenced to community service.
- After 2 years of marketing, only 40% of it's 597 units have been sold
- The condo owners are suing the developers
- Rental tenants (who have lived in the building since before it was converted) are suing claiming improper eviction and failure to maintain the building
- The developers are suing each other
- Unpaid contractors have placed liens against the individual units.
- The State Attorney General has halted future sales in the building
- The developers are in default on $100 million in loans
- The lenders are preparing to foreclose on the developers
- The developers failed to pay $5.4 million in common charges for the hundreds of units that they still own
- Tenants have reported severe structural defects including collapsed ceilings, extensive water leaks and damage, and asbestos contamination
While no project is perfect, Sheffield57 offers an important lesson to condo buyers. Condo projects are not always completed as marketed. The track record of the developers, their ability to meet their commitments, and the ability to deliver a quality product will determine the final value of a condo unit. While most projects turn out well, it's important to complete due diligence on the developers and commercial lenders. However, like any other speculative project, condo developments come with speculative risks that are difficult to completely eliminate.
3 Dead in UT-Area Apartment Construction Accident
June 10, 2009 20:44 Filed in: News
In a very sad accident, three men died after
scaffolding collapsed on the 11th floor of 21 Rio, a
21-story rental apartment complex rising in the West
Campus neighborhood near UT.
The three men were standing on the scaffolding when part of the platform collapsed. The luxury student apartment complex is scheduled to open later this month.
The three men were standing on the scaffolding when part of the platform collapsed. The luxury student apartment complex is scheduled to open later this month.
Episcopal Church to Develop Downtown Block
June 09, 2009 19:50 Filed in: News
The Episcopal Church has purchased the downtown block
bounded by Seventh, Eighth, Trinity and Neches streets
for $9.5 million. The national church organization
plans to spend an additional $40 million to create a
new complex to house its national archives.
When completed, the building will be as tall as 5 stories with 70,000 square feet of archive space, a garage, some public spaces, and limited ground floor retail. Since the block is in a capital view corridor, development is limited to no more than 75-feet. Because of the capital view restrictions, it was never a prime candidate for high-rise or condo development.
Here is a summary from the Statesman:
The Episcopal Church has bought a block in downtown Austin where it plans to build a facility to house its national archives and provide space for meetings, exhibits, research and other purposes.
The church purchased the block, now a parking lot bounded by Seventh, Eighth, Trinity and Neches streets, from Jimmy Nassour, an Austin real estate attorney. The purchase price was $9.5 million, said Mark Duffy, director of the Archives of the Episcopal Church.
The church, which borrowed against its endowment to buy the land, plans to launch a capital campaign next year to raise money to repay that loan and pay for the new facility. The cost of the project, which is in the "very preliminary" planning stages, will be almost $40 million, Duffy said.
The building probably will be five stories, with up to 70,000 square feet and a garage with some public spaces. Duffy said the start of construction is at least two years away.
In addition to archives and meeting space, the building will be a place "for Episcopalians nationally to gather and to study, reflect on and feel proud of their heritage," Duffy said.
"The idea is to build something that will be a visible presence for the Episcopal Church in the community, as well as a place where church members and the public can explore issues of vital importance to the church today," Duffy said.
When completed, the building will be as tall as 5 stories with 70,000 square feet of archive space, a garage, some public spaces, and limited ground floor retail. Since the block is in a capital view corridor, development is limited to no more than 75-feet. Because of the capital view restrictions, it was never a prime candidate for high-rise or condo development.
Here is a summary from the Statesman:
The Episcopal Church has bought a block in downtown Austin where it plans to build a facility to house its national archives and provide space for meetings, exhibits, research and other purposes.
The church purchased the block, now a parking lot bounded by Seventh, Eighth, Trinity and Neches streets, from Jimmy Nassour, an Austin real estate attorney. The purchase price was $9.5 million, said Mark Duffy, director of the Archives of the Episcopal Church.
The church, which borrowed against its endowment to buy the land, plans to launch a capital campaign next year to raise money to repay that loan and pay for the new facility. The cost of the project, which is in the "very preliminary" planning stages, will be almost $40 million, Duffy said.
The building probably will be five stories, with up to 70,000 square feet and a garage with some public spaces. Duffy said the start of construction is at least two years away.
In addition to archives and meeting space, the building will be a place "for Episcopalians nationally to gather and to study, reflect on and feel proud of their heritage," Duffy said.
"The idea is to build something that will be a visible presence for the Episcopal Church in the community, as well as a place where church members and the public can explore issues of vital importance to the church today," Duffy said.
Austin Leads Nation in Job Growth - AGAIN!
June 03, 2009 21:02 Filed in: News
This just in: Austin led the nation's big city job
markets for the third month in a row. In fact, Austin
was the ONLY large metropolitan area to add jobs
between April 2008 and April 2009. With 3,400 new jobs,
Austin employment grew at 0.4% during the period.
Since job growth is one of the strongest drivers of real estate values, it is a positive development for Austin's downtown condo market and for broader home sales and prices.
Here is a summary from the Statesman:
By adding 3,400 jobs, Austin was not only ranked #1 but the only metropolitan area
The Austin area was the nation’s strongest big-city job market last month, according to a new report from the Bureau of Labor Statistics.
Among the 38 metro areas with a workforce of at least 750,000, Austin was the only one that gained jobs from April 2008 to April 2009, the bureau said. It was the third month in a row that Austin had earned that distinction.
Austin added 3,400 jobs in that period, a 0.4 percent gain, during that period.
Among other technology hubs, the Silicon Valley area lost jobs at a 4.4 percent annual rate in April. Portland, Ore., was down 4.7 percent, Seattle was down 3.4 percent and Raleigh, N.C., was down 3.3 percent.
Some smaller cities also racked up gains, including Midland, up 2.2 percent, and Odessa, up 2.9 percent.
Since job growth is one of the strongest drivers of real estate values, it is a positive development for Austin's downtown condo market and for broader home sales and prices.
Here is a summary from the Statesman:
By adding 3,400 jobs, Austin was not only ranked #1 but the only metropolitan area
The Austin area was the nation’s strongest big-city job market last month, according to a new report from the Bureau of Labor Statistics.
Among the 38 metro areas with a workforce of at least 750,000, Austin was the only one that gained jobs from April 2008 to April 2009, the bureau said. It was the third month in a row that Austin had earned that distinction.
Austin added 3,400 jobs in that period, a 0.4 percent gain, during that period.
Among other technology hubs, the Silicon Valley area lost jobs at a 4.4 percent annual rate in April. Portland, Ore., was down 4.7 percent, Seattle was down 3.4 percent and Raleigh, N.C., was down 3.3 percent.
Some smaller cities also racked up gains, including Midland, up 2.2 percent, and Odessa, up 2.9 percent.
The Ugly Side of Downtown Austin
June 02, 2009 21:31 Filed in: News
The shooting of 8 people last Thursday night outside a
downtown nightclub was an anomaly for Austin. The
terrible incident at Spiros nightclub, however, brought
to light the problems that come with the vibrant
alcohol-driven nightlife on sixth street and the
surrounding blocks.
After the incident, the Austin Police Department released an amazing set of statistics on Spiros nightclub:
- Since 2008, the police have responded to calls at Spiros 172 times
- Since November 2007, there have been 115 known thefts within 500 feet of the club
- During the same period, there have been 47 reported burglaries within 500 feet
- There have been 25 aggravated assaults in the immediate vicinity of the club
- There have been 7 assaults on a peace officer at the club
- APD reports 95 instances of possession of controlled substances, dangerous drugs, and marijuana
While Spiros may be one of the worst offenders -- the City is now trying to shut the club down -- it is an example of the ugly side of downtown. While the live music scene is one of the City's cultural crown jewels, the best clubs are joined by more problematic venues. As in New Orleans and San Diego and Nashville, the combination of music, youth, and alcohol means that nightlife and crime often go hand in hand. That said, it is worth noting that no major downtown condo projects are in the immediate vicinity of Spiros and the worst 6th street crime.
After the incident, the Austin Police Department released an amazing set of statistics on Spiros nightclub:
- Since 2008, the police have responded to calls at Spiros 172 times
- Since November 2007, there have been 115 known thefts within 500 feet of the club
- During the same period, there have been 47 reported burglaries within 500 feet
- There have been 25 aggravated assaults in the immediate vicinity of the club
- There have been 7 assaults on a peace officer at the club
- APD reports 95 instances of possession of controlled substances, dangerous drugs, and marijuana
While Spiros may be one of the worst offenders -- the City is now trying to shut the club down -- it is an example of the ugly side of downtown. While the live music scene is one of the City's cultural crown jewels, the best clubs are joined by more problematic venues. As in New Orleans and San Diego and Nashville, the combination of music, youth, and alcohol means that nightlife and crime often go hand in hand. That said, it is worth noting that no major downtown condo projects are in the immediate vicinity of Spiros and the worst 6th street crime.
WOW! Austin Home Prices Rising!
May 27, 2009 21:30 Filed in: News
Across the country, most major metropolitan areas are
seeing home prices continue to drop. In fact, housing
values are down 20% from their peak nationwide. Housing
prices in Austin, however, never experienced the same
loss of value. While inventory remains high and sales
volumes have dropped -- April 2009 sales were down 33%
from the peak April 2007 volume -- prices have remained
amazingly stable.
Today, one major index of home values reported that Austin home prices actually increased by 2.2% in March, 2009 over the year ago period -- a very positive development for the Austin market. In the same index, nationwide prices were down by 11.5% during the same period.
Why has Austin stayed strong? There are three reasons:
(1) Austin never experienced bubble-like run up in values during 2006-2007 that many other markets experienced
(2) Austin continues to see strong net inbound migration which helps stabilize values
(3) Austin employment has remained strong. Amazingly, the most recent data shows a decrease in the local unemployment rate.
As a result, Austin continues to be one of the strongest real estate markets in the country.
Here is a summary from the Austin Business Journal:
According to First American CoreLogic’s Home Price Index, 33 states saw home prices decline at a faster rate in March. However in the major Texas cities, including the Austin-Round Rock metro area, prices increased. In the local area prices rose 2.2 percent in March compared with March 2008. That’s down slightly from the region’s February home price increase of 3.2 percent compared to the previous February.
Housing price declines are slowing in states that have seen the highest declines in the past three years, but prices are dropping faster in states that have seen only moderate decreases in that time period, the research found.
Nationally, housing prices fell 11.5 percent in March compared with the same month last year, down from an 11.7 percent annual decline in February.
The number of states with double-digit annual declines has doubled in the last year, according to the index, from seven states in March 2008 to 14 states this March.
Nevada remained the top-ranked state for annual price depreciation in March, with an average home price decline of 26 percent. California followed close behind with a housing price decline of 25 percent compared with the same month last year. Rhode Island, Florida and Arizona round out the top five.
Today, one major index of home values reported that Austin home prices actually increased by 2.2% in March, 2009 over the year ago period -- a very positive development for the Austin market. In the same index, nationwide prices were down by 11.5% during the same period.
Why has Austin stayed strong? There are three reasons:
(1) Austin never experienced bubble-like run up in values during 2006-2007 that many other markets experienced
(2) Austin continues to see strong net inbound migration which helps stabilize values
(3) Austin employment has remained strong. Amazingly, the most recent data shows a decrease in the local unemployment rate.
As a result, Austin continues to be one of the strongest real estate markets in the country.
Here is a summary from the Austin Business Journal:
According to First American CoreLogic’s Home Price Index, 33 states saw home prices decline at a faster rate in March. However in the major Texas cities, including the Austin-Round Rock metro area, prices increased. In the local area prices rose 2.2 percent in March compared with March 2008. That’s down slightly from the region’s February home price increase of 3.2 percent compared to the previous February.
Housing price declines are slowing in states that have seen the highest declines in the past three years, but prices are dropping faster in states that have seen only moderate decreases in that time period, the research found.
Nationally, housing prices fell 11.5 percent in March compared with the same month last year, down from an 11.7 percent annual decline in February.
The number of states with double-digit annual declines has doubled in the last year, according to the index, from seven states in March 2008 to 14 states this March.
Nevada remained the top-ranked state for annual price depreciation in March, with an average home price decline of 26 percent. California followed close behind with a housing price decline of 25 percent compared with the same month last year. Rhode Island, Florida and Arizona round out the top five.
W Hotel & Residences Developer Faces Delisting
May 22, 2009 20:56 Filed in: News
Stratus Properties, the developer of the W Hotel &
Residences in the 2nd street district, is
facing delisting from the NASDAQ for failure to
promptly file financial reports.
While this sounds bad, the event alone should not jeopardize the project. However, the developer's accounting irregularities and delinquent financial reports will limit financial flexibility until the issue is resolved. This is an especially important issue for the W as one of it major lenders is in precarious financial shape. It could also violate covenants of the project's bank financing.
The best indicator of the situation is the fact that the stock continues to trade at a healthy value, signaling the market's belief that the issues will be resolved. While stock in Stratus is down 50% from it's 2009 high set on January 2nd, it's more than 50% above its March 9 low.
Article Continues: Read More...
While this sounds bad, the event alone should not jeopardize the project. However, the developer's accounting irregularities and delinquent financial reports will limit financial flexibility until the issue is resolved. This is an especially important issue for the W as one of it major lenders is in precarious financial shape. It could also violate covenants of the project's bank financing.
The best indicator of the situation is the fact that the stock continues to trade at a healthy value, signaling the market's belief that the issues will be resolved. While stock in Stratus is down 50% from it's 2009 high set on January 2nd, it's more than 50% above its March 9 low.
Article Continues: Read More...
New Downtown Restrictions to Limit Lakeside Skyscrapers
May 22, 2009 20:51 Filed in: News
The most contentious Austin zoning battles relate to
development close to Ladybird Lake. The prime downtown
lake is considered one of the city's most important
natural assets. As a result, the City has been closely
examining proposals to protect the lake from future
development. Essentially, the City Council would like
to limit the height of development on sites directly
adjacent to the lake.
Essentially, the City has two goals: first, to control development around the lake. Second, to ensure access to the lake. The appropriate policy action becomes complicated with an important hypothetical: where there are gaps in the hike and bike trail, should the city provide height variances in exchange for trail extension or improved public access to the lake? It's this very real example that been the focus of City Council debate.
Last night, after much discussion, the Council gave the second of three required approvals that limit building heights around the lake to either 60 or 96 feet depending on location. To address the above example the council decided that developers could be allowed to exceed 96 feet "if they can prove doing so would be substantially better for the community." This is a fair compromise that will provide the City with the appropriate zoning tools to protect the lake in the future.
Article Continues: Read More...
Essentially, the City has two goals: first, to control development around the lake. Second, to ensure access to the lake. The appropriate policy action becomes complicated with an important hypothetical: where there are gaps in the hike and bike trail, should the city provide height variances in exchange for trail extension or improved public access to the lake? It's this very real example that been the focus of City Council debate.
Last night, after much discussion, the Council gave the second of three required approvals that limit building heights around the lake to either 60 or 96 feet depending on location. To address the above example the council decided that developers could be allowed to exceed 96 feet "if they can prove doing so would be substantially better for the community." This is a fair compromise that will provide the City with the appropriate zoning tools to protect the lake in the future.
Article Continues: Read More...
Brazos Place Auction Results: All Units Sell, 29% Discount
May 17, 2009 16:11 Filed in: News
Today was a big day for Brazos Place
as all 19 remaining units were sold in less than
90 minutes to a packed room of bidders.
On average, the units sold at a 29% discount to the original listing price. This is, however, a useless barometer as the units were not selling well at the original prices. More useful is the average price / square foot which at $281/SF is a 9% discount to the 2008 downtown condo average of $308. Unfortunately for current Brazos Place residents, the units sold for 24% less on a $/SF basis than the $370/SF average of the 12 Brazos Place units sold via MLS in 2008.
Here is the complete auction data:
According to the auctioneers, more than 1,000 people pre-viewed units in advance of the auction. A large number bid in person. This is testament to the string demand for downtown housing at the right price. In this light, the auction was a major success. For existing residents of Brazos Place, however, the news is much less positive. Every existing owner most certainly paid substantially more money for their unit than today's auction prices. For them, the real test will be when units sell again on the resale market: prices will likely be somewhere between the original price and the auction discounts.
Article Continues: Read More...
On average, the units sold at a 29% discount to the original listing price. This is, however, a useless barometer as the units were not selling well at the original prices. More useful is the average price / square foot which at $281/SF is a 9% discount to the 2008 downtown condo average of $308. Unfortunately for current Brazos Place residents, the units sold for 24% less on a $/SF basis than the $370/SF average of the 12 Brazos Place units sold via MLS in 2008.
Here is the complete auction data:
|
Unit
|
Plan
|
SF
|
Listing
|
Opening Bid
|
Sold (incl. 4% Fee)
|
$/SF
|
Discount
|
|
709
|
1 Bedroom / 1 Bath
|
1272
|
$414,900
|
$170,000
|
$288,080
|
$226
|
31%
|
|
1007
|
2 Bedrooms / 2 Baths
|
1399
|
$479,900
|
$190,000
|
$339,040
|
$242
|
29%
|
|
708
|
2 Bedrooms / 2 Baths
|
1358
|
$519,900
|
$210,000
|
$329,680
|
$243
|
37%
|
|
1008
|
2 Bedrooms / 2 Baths
|
1324
|
$494,900
|
$190,000
|
$326,560
|
$247
|
34%
|
|
1108
|
2 Bedrooms / 2 Baths
|
1324
|
$504,900
|
$200,000
|
$329,680
|
$249
|
35%
|
|
705
|
1 Bedroom / 1 Bath
|
891
|
$304,900
|
$120,000
|
$229,840
|
$258
|
25%
|
|
1208
|
2 Bedrooms / 2 Baths
|
1324
|
$514,900
|
$210,000
|
$346,320
|
$262
|
33%
|
|
710
|
1 Bedroom / 1 Bath
|
623
|
$199,900
|
$80,000
|
$168,480
|
$270
|
16%
|
|
1103
|
1 Bedroom / 1 Bath
|
832
|
$324,900
|
$130,000
|
$229,840
|
$276
|
29%
|
|
808
|
2 Bedrooms / 2 Baths
|
1324
|
$519,900
|
$210,000
|
$374,400
|
$283
|
28%
|
|
1107
|
2 Bedrooms / 2 Baths
|
1399
|
$489,900
|
$200,000
|
$399,360
|
$285
|
18%
|
|
1109
|
1 Bedroom / 1 Bath
|
884
|
$359,900
|
$140,000
|
$255,840
|
$289
|
29%
|
|
908
|
2 Bedrooms / 2 Baths
|
1324
|
$484,900
|
$190,000
|
$385,840
|
$291
|
20%
|
|
1203
|
1 Bedroom / 1 Bath
|
832
|
$332,400
|
$130,000
|
$244,400
|
$294
|
26%
|
|
1207
|
2 Bedrooms / 2 Baths
|
1399
|
$499,900
|
$200,000
|
$418,080
|
$299
|
16%
|
|
707
|
2 Bedrooms / 2 Baths
|
1399
|
$519,900
|
$210,000
|
$422,240
|
$302
|
19%
|
|
706
|
1 Bedroom / 1 Bath
|
812
|
$339,900
|
$140,000
|
$250,640
|
$309
|
26%
|
|
1210
|
1 Bedroom / 1 Bath
|
623
|
$259,900
|
$100,000
|
$200,720
|
$322
|
23%
|
|
PH
|
Custom Plan
|
2745
|
$1,575,000
|
$600,000
|
$967,200
|
$352
|
39%
|
According to the auctioneers, more than 1,000 people pre-viewed units in advance of the auction. A large number bid in person. This is testament to the string demand for downtown housing at the right price. In this light, the auction was a major success. For existing residents of Brazos Place, however, the news is much less positive. Every existing owner most certainly paid substantially more money for their unit than today's auction prices. For them, the real test will be when units sell again on the resale market: prices will likely be somewhere between the original price and the auction discounts.
Article Continues: Read More...
BartonPlace Event Invitation
May 17, 2009 16:11 Filed in: News
BartonPlace would like to invite Austin Towers readers
to a live radio discussion on "Dissecting Downtown
Facts vs. Fiction" to be followed by a construction tour of BartonPlace and an afternoon reception.
The details are:
What:
Live Talk Radio Show (1:00pm)
BartonPlace Site Tour(3:30pm)
Afternoon Reception (4-5pm)
When: Sunday, May 24th @1:00pm
Where: BartonPlace PresentationCenter
(1800 Barton Springs Rd)
RSVP by May 20th to ashley@bartonplaceaustin.com Read More...
Facts vs. Fiction" to be followed by a construction tour of BartonPlace and an afternoon reception.
The details are:
What:
Live Talk Radio Show (1:00pm)
BartonPlace Site Tour(3:30pm)
Afternoon Reception (4-5pm)
When: Sunday, May 24th @1:00pm
Where: BartonPlace PresentationCenter
(1800 Barton Springs Rd)
RSVP by May 20th to ashley@bartonplaceaustin.com Read More...
Star Riverside Proceeding with Construction
May 14, 2009 16:39 Filed in: Project
Update
Star Riverside has
announced plans to proceed with construction of
the first two planned buildings with completion
expected in the first quarter of 2010. The project
may be the last major condo development to break
ground during the current building boom. With
tight credit markets and slack demand, most
drawing board projects have been indefinitely
delayed or cancelled.
Star Riverside is an Australian-driven development on the south shore of Ladybird Lake near I-35. The $150M project will feature to 64 units in the first phase. According to the developers, the first two buildings will feature large units (2,000SF+) which will be priced from $600K to $1M+. A second phase would offer smaller units starting at as little as 4375K. These offerings do not match, however, with current MLS listings which include 6 units with prices ranging from $345K for a 670 square foot 1/1 to, $517K for a 935SF 2/2, $792K for a 1,280SF 3/2 and $1.34M for a 2,315SF 3/2.
The developers, Constellation Property Group, report that they have lined-up financing for the first two buildings but not for future phases. They hope to raise additional money to complete the remaining buildings by late 2011.
Here is a summary from the Statesman:
The first phase, Star Riverside, will have 64 units in two six-story buildings overlooking Lady Bird Lake. It is expected to be finished in the first quarter of next year.
Prices for the units, all of which will have about 2,200 square feet, will range from the high $600,000s to about $975,000, said Eugene Marchese, president of Constellation Property Group.
The second phase, Revolution Riverside, will have about 140 units in two buildings of nine and 11 stories. Construction is expected to start in mid-2010 and be completed in late 2011, Marchese said.
Those units will be priced from $375,000 to about $650,000 and will have about 1,200 square feet.
Marchese said he has scrapped plans for Star Luxe, an ultra-luxury part of the project that was to have had units of 4,000 square feet or more, priced at $1 million and up.
Nationally and in Austin, "I think we will see the luxury end of the market struggling for at least the next three to five years," Marchese said, adding that the high-end sector is troubled across all industries, from condos to retailing in general.
"I think there's just been a paradigm shift across the world," he said.
Economic outlook: Marchese said he has financing in place for the first phase of his project but not for the second phase. He said he thinks the capital markets, which have largely been locked up, will loosen next year.
Although some real estate experts say the economy hasn't hit bottom, Marchese said: "I think we're seeing the bottom, and we're going to bounce along here for the next six months. And then within 12 months, we'll start to see a definite turn in the overall economy, and the capital markets will follow suit."
Star Riverside is an Australian-driven development on the south shore of Ladybird Lake near I-35. The $150M project will feature to 64 units in the first phase. According to the developers, the first two buildings will feature large units (2,000SF+) which will be priced from $600K to $1M+. A second phase would offer smaller units starting at as little as 4375K. These offerings do not match, however, with current MLS listings which include 6 units with prices ranging from $345K for a 670 square foot 1/1 to, $517K for a 935SF 2/2, $792K for a 1,280SF 3/2 and $1.34M for a 2,315SF 3/2.
The developers, Constellation Property Group, report that they have lined-up financing for the first two buildings but not for future phases. They hope to raise additional money to complete the remaining buildings by late 2011.
Here is a summary from the Statesman:
The first phase, Star Riverside, will have 64 units in two six-story buildings overlooking Lady Bird Lake. It is expected to be finished in the first quarter of next year.
Prices for the units, all of which will have about 2,200 square feet, will range from the high $600,000s to about $975,000, said Eugene Marchese, president of Constellation Property Group.
The second phase, Revolution Riverside, will have about 140 units in two buildings of nine and 11 stories. Construction is expected to start in mid-2010 and be completed in late 2011, Marchese said.
Those units will be priced from $375,000 to about $650,000 and will have about 1,200 square feet.
Marchese said he has scrapped plans for Star Luxe, an ultra-luxury part of the project that was to have had units of 4,000 square feet or more, priced at $1 million and up.
Nationally and in Austin, "I think we will see the luxury end of the market struggling for at least the next three to five years," Marchese said, adding that the high-end sector is troubled across all industries, from condos to retailing in general.
"I think there's just been a paradigm shift across the world," he said.
Economic outlook: Marchese said he has financing in place for the first phase of his project but not for the second phase. He said he thinks the capital markets, which have largely been locked up, will loosen next year.
Although some real estate experts say the economy hasn't hit bottom, Marchese said: "I think we're seeing the bottom, and we're going to bounce along here for the next six months. And then within 12 months, we'll start to see a definite turn in the overall economy, and the capital markets will follow suit."
Brazos Place: Auction Fine Print
May 06, 2009 22:22 Filed in: News
In eleven days, Brazos Place
will auction as many as 20 units to the lowest
bidder. The
May 17 auction has received lots of press and
attention -- in particular because the units are being
promoted with incredibly low opening bids. The opening
bids start at a too-good-to-be-true $80,000 -- as much
as 58% lower than the original unit price.
Are the opening bids too good to be true? Like any auction, it's important to read the fine print. Here are some of the rules of the Brazos Place condo auction:
- The opening bids are not the reserve bid: the reserve bids have not been made public. The units absolutely will not be sold for the starting bid price.
- All buyers must pay a 4% buyers fee on top of their bid.
- Like any resident, buyers will need to pay a monthly condo fee. The average is $400 per month.
- To participate, you must register by 5/14.
- Before you bid, you must provide a $2,500 deposit via cashier's check for each unit you are approved to bid on. You need to show them the check to bid, but you don't hand it over unless you win.
- Successful bidders need to put a 3% deposit if they are purchasing one unit or a 5% deposit if they are purchasing multiple units. This needs to be paid upon successful bid but can be paid with a personal check.
- To be eligible to bid, you must be pre-qualified by Bank of America -- even if you have other arrangements for a loan.
- You can register your broker / agent and they will receive a 2% commission.
- You must close within 30-days (or 45-days for an additional $1,500).
- If you don't close, you will lose as little as $2,500 or as much as 3% of the purchase price.
These rules are not unusual for a condo auction -- in fact, they are quite fair. But it is very important for bidders to understand how the auction will work. In particular, it is essential for buyers to know that they will need to meet a reserve price and pay a 4% buyers premium, important considerations for bidders looking for a great deal.
Are the opening bids too good to be true? Like any auction, it's important to read the fine print. Here are some of the rules of the Brazos Place condo auction:
- The opening bids are not the reserve bid: the reserve bids have not been made public. The units absolutely will not be sold for the starting bid price.
- All buyers must pay a 4% buyers fee on top of their bid.
- Like any resident, buyers will need to pay a monthly condo fee. The average is $400 per month.
- To participate, you must register by 5/14.
- Before you bid, you must provide a $2,500 deposit via cashier's check for each unit you are approved to bid on. You need to show them the check to bid, but you don't hand it over unless you win.
- Successful bidders need to put a 3% deposit if they are purchasing one unit or a 5% deposit if they are purchasing multiple units. This needs to be paid upon successful bid but can be paid with a personal check.
- To be eligible to bid, you must be pre-qualified by Bank of America -- even if you have other arrangements for a loan.
- You can register your broker / agent and they will receive a 2% commission.
- You must close within 30-days (or 45-days for an additional $1,500).
- If you don't close, you will lose as little as $2,500 or as much as 3% of the purchase price.
These rules are not unusual for a condo auction -- in fact, they are quite fair. But it is very important for bidders to understand how the auction will work. In particular, it is essential for buyers to know that they will need to meet a reserve price and pay a 4% buyers premium, important considerations for bidders looking for a great deal.